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Should Value Investors Buy TopBuild (BLD) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is TopBuild (BLD - Free Report) . BLD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.45, while its industry has an average P/E of 12.70. Over the last 12 months, BLD's Forward P/E has been as high as 17.76 and as low as 9.11, with a median of 13.27.

Another valuation metric that we should highlight is BLD's P/B ratio of 3.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.72. BLD's P/B has been as high as 4.28 and as low as 2.47, with a median of 3.30, over the past year.

Finally, our model also underscores that BLD has a P/CF ratio of 10.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BLD's P/CF compares to its industry's average P/CF of 16.14. Over the past 52 weeks, BLD's P/CF has been as high as 13.16 and as low as 7.30, with a median of 9.58.

These are just a handful of the figures considered in TopBuild's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BLD is an impressive value stock right now.


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